01749cam a22002657 4500001000600000003000500006005001700011008004100028100002600069245016700095260006600262490004100328500001500369520060600384530006100990538007201051538003601123690005601159690005601215700002101271710004201292830007601334856003701410856003601447w8402NBER20161209100003.0161209s2001 mau||||fs|||| 000 0 eng d1 aGoldberg, Pinelopi K.10aMarket Integration and Convergence to the Law of One Priceh[electronic resource]:bEvidence from the European Car Market /cPinelopi K. Goldberg, Frank Verboven. aCambridge, Mass.bNational Bureau of Economic Researchc2001.1 aNBER working paper seriesvno. w8402 aJuly 2001.3 aThis paper exploits the unique experiment of European market integration to investigate the relationship between integration and price convergence in international markets. Using a panel data set of car prices we examine how the process of integration has affected cross-country price dispersion in Europe. We find surprisingly strong evidence of convergence towards both the absolute and the relative versions of Purchasing Power Parity. Our analysis illuminates the main sources of segmentation in international markets and suggests the type of institutional changes that can successfully reduce it. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aF0 - General2Journal of Economic Literature class. 7aL0 - General2Journal of Economic Literature class.1 aVerboven, Frank.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w8402.4 uhttp://www.nber.org/papers/w840241uhttp://dx.doi.org/10.3386/w8402